Understanding Pet Insurance

How pet insurance works: A quick overview

Pet insurance helps cover the cost of unexpected vet bills. After your pet receives care, you pay the vet, submit a claim, and get reimbursed based on your policy’s coverage. Policies usually cover accidents, illnesses, and sometimes routine care, depending on the plan. There are limits to how much you can claim, and pre-existing conditions are generally not covered. Most policies also have a waiting period before coverage kicks in for certain conditions. Pet insurance gives peace of mind by helping to manage unexpected medical costs for your pet.

In Australia, pet insurance typically offers several types of coverage. These can vary among different providers, but the main types include:

1. Accident-Only Cover: This only covers costs related to injuries from accidental injuries, such as broken bones or wounds. It doesn’t cover illness-related expenses.
2. Accident and Illness Cover: This is a more well-rounded coverage option that covers both accidental injuries and illnesses. It can include coverage for a wide range of conditions, from minor issues, like infections and allergies, to more serious diseases like cancer.
3. Accident and Illness Cover with add-ons: Some plans also cover routine care treatments like vaccinations, desexing, and flea and tick treatments, along with accidental injuries and illnesses.
4. Routine Care: Can be offered as an optional add-on, which helps to cover some costs for preventative care and wellness treatments, such as vaccinations, microchipping, and desexing. The coverage limits for these treatments are usually lower than for other claimable conditions.

Key insurance terms you need to know

Common insurance terms you’ll come across when comparing different providers.

1. Annual Limit: The maximum amount your pet insurance will pay for all claims in one year. Once this limit is reached, you’ll need to cover any additional costs yourself until the next policy year.
2. Benefit Percentage: The percentage of each eligible vet bill your insurance will cover. For instance, if your benefit percentage is 80%, the insurance will pay 80% of the bill, and you’ll pay the remaining 20% (after any excess is applied).
3. Excess: The amount you have to pay out of pocket before your insurance starts covering costs. It can be a fixed amount per claim, per condition or per policy year.
4. Sub-limits: Specific limits under your policy for certain types of treatments or conditions. For example, there might be a sub-limit placed on high cost treatments.
5. Exclusion Periods (Waiting Periods): The period of time after you start your policy during which you can’t make a claim for treatments. If your pet gets sick or injured during this period, the costs won’t be covered by the insurance.
6. Pre Existing Conditions: Any signs or symptoms of conditions your pet had before your insurance policy started, including during any exclusion periods. Pre-existing conditions are generally not covered by pet insurance policies.

Differences between pet insurance and human health insurance

While both health insurance and pet insurance help cover medical costs, they work a bit differently. Health insurance for humans usually pays the doctor directly, while pet insurance typically requires you to pay the vet upfront, then submit a claim for reimbursement. Pet insurance is more like property insurance, focusing on accidents, illnesses, and sometimes routine care, but it usually doesn’t cover pre-existing conditions or preventative care the same way human health insurance might. Additionally, pet insurance policies often have annual or per-condition limits on how much can be claimed.

Unlike humans in Australia, who are covered by Medicare for many healthcare costs, pets do not have a government healthcare system. Pet insurance works more like property insurance, requiring you to pay the vet upfront and then submit a claim for reimbursement. While health insurance for humans often covers a broad range of care through Medicare, pet insurance focuses on accidents, illnesses, and sometimes routine treatments. However, it typically doesn’t cover pre-existing conditions or offer the same level of comprehensive care that Medicare does for people, making pet insurance an important option to manage unexpected vet bills for pet owners.

Key considerations when choosing pet insurance

When choosing pet insurance, consider several key factors. First, think about your pet’s specific coverage needs and whether the policy allows customisation, such as adjusting the excess, annual limit, and benefit percentage. Next, evaluate the claims process: great customer service and a straightforward, quick claims experience can make a big difference in your overall pet insurance experience. Also, consider the costs —lower premiums could mean less coverage, and check for any payout limits on specific conditions. Finally, decide on the type of excess that works best for your budget.

Importance of pet insurance

Pet insurance plays an important part of responsible pet ownership. Caring for pets can be expensive and vet bills can quickly add up, especially in emergencies.

Pet insurance acts as a financial safety net, helping cover unexpected veterinary costs if your pet needs treatment. Some medical expenses can run into the tens of thousands, and having a pet insurance plan can significantly reduce the financial burden and stress during difficult times.

Pet Insurance for puppies and kittens

Starting your pet insurance when your pet is young and healthy could minimise the chances of your pet having any Pre-existing Conditions that may not be covered later. Insuring them early can help to ensure they receive extensive coverage without the worry of expensive vet bills.

Pet Insurance for older pets

If you’ve adopted an older pet, chances are your new friend will have at least one or two existing health issues, even if they’re fairly minor and under control. Older pets need extra love and attention and taking in an older pet means potentially bearing the high cost of caring for them as well. Whilst pet insurance can’t cover Pre-existing Conditions, it can still be a lifeline in avoiding potentially large vet bills and be your ticket to affording the level of care for any new health issues or accidental injuries that arise.

How to Make the Most of Your Pet Insurance

Claims process & submitting claims

To make the most of your pet insurance, it’s important to understand the claims process with the provider you choose. Generally, after your pet receives treatment, you’ll need to pay the vet, then submit a claim with your insurer.

Common pitfalls to avoid

Understanding your pet insurance policy and the claims process can prevent disappointment later on. Common pitfalls include incomplete paperwork when submitting claims and not being aware of exclusions or limitations in your coverage. Being familiar with your policy details can help you avoid surprises and make the most of your insurance. Also, check with your insurance provider if they have options available to help streamline future claims.

If your claim is denied, it’s typically due to these reasons:

1. Submitting a claim within an exclusion period – Your pet isn’t covered the moment you buy your policy. Your policy has different exclusion periods that need to be passed symptom-free before coverage begins.
2. Submitting a claim for a pre-existing condition – Pre-existing conditions aren’t covered if any signs or symptoms of those conditions occurred before the exclusion periods ended.
3. Submitting a claim for a non-covered item – Pet insurance is designed to help with unexpected vet costs. Preventative, elective or routine treatments including regular health check-ups, vaccinations and desexing aren’t covered.

Renewing your policy: Key Factors

Pet insurance premiums might change over time and there are some factors that can affect your premiums at renewal.

1. Your Pet’s Age: Just like humans, as pets age, their healthcare needs can become more complex and frequent. Premiums can be adjusted to account for these anticipated changes in medical expenses.
2. Rising Veterinary Costs: The cost of veterinary care and treatments increase due to several factors, including general economy wide inflation and increased prices for medical supplies and equipment. As the cost to provide health services for pets increases, insurance premiums may also need to be adjusted to cover these rising expenses.
3. Advancements in Veterinary Care: New medical treatments and technologies are continually being developed, which can lead to your pet enjoying a higher quality of care. These can include innovative surgeries, new medications, or state-of-the-art imaging technologies. While these advancements can be life-saving, they often come at a higher cost, which can influence the price of insurance coverage.
4. Industry Trends: The pet insurance industry is always evolving. Changes in the overall market and regulatory compliance costs can affect how premiums are set.
5. Inflation: Just like in other areas of the economy, inflation impacts veterinary services and pet care costs, which can be reflected in your premium as the costs for vet care and services rise.
6. Location and Breed Trends: Where you live and the breed of your pet can also impact your insurance costs. Insurance premiums may be adjusted based on the collective health data of pets similar to yours in your area to more accurately reflect the risk and cost of providing care.

Your pet may need different coverage as they age, so reassessing options can help ensure you have the right protection.

Setting Yourself Up for Pet Insurance Success

How to be prepared for emergencies

Emergencies can happen anytime, so it’s important to have a plan in place. Keep your vet’s contact information, a 24-hour emergency clinic contact details, and your pet insurance policy number in an easily accessible location. Ensure your policy covers emergency visits and have an emergency fund to cover upfront costs before your claim is processed.

Navigating vet visits with insurance

When visiting the vet, let them know you have pet insurance. Ask for detailed invoices and make sure you have all the necessary paperwork to submit a claim. Familiarising yourself with your pet insurance claim process so you’re across the information required to avoid delays.

After your pet has received treatment, you can usually ask your vet to submit the claim for you when you’re at the clinic, by providing your policy number or asking the clinic to submit the invoice or history through to your insurance provider.

Getting the most out of your policy

To make the most out of your pet insurance, understand what’s covered and what’s not. Staying organised with medical records and policy details can streamline claims assessment process. Regular vet check-ups can also help identify health issues early, reducing the risk of them becoming serious and avoiding expensive vet bills later on.

Petsy Pet Insurance

Established in 2019, Petsy is a leading pet insurance provider in Australia offering extensive coverage and exceptional service to pet owners nationwide. With a deep understanding of the needs and financial circumstances of pet owners, Petsy aims to deliver peace of mind and support during unexpected veterinary emergencies. Petsy is committed to transparency and providing innovative solutions that prioritise the well-being of our beloved pets.

We offer coverage up to $30,000 annually to help cover eligible vet bills for pet owners if their pet runs into an unexpected mishap, with no sub-limits on any of the conditions you can claim.

With Petsy pet insurance, pet owners can rest easy knowing that expenses for costly vet treatments (and more) can be reimbursed, allowing pet parents to focus on their pet’s well-being instead of the financial burden. It also minimises the need to make difficult choices about a pet’s treatments, due to financial constraints.

Why choose Petsy?

Petsy Pet Insurance is designed with your pet’s care in mind. Unlike many policies that cover only specific conditions, Petsy covers almost every type of accidental injury, illness, or condition, unless it’s specified as not covered under the policy (you can refer to these in the General Exclusions section in the PDS).

We have no sub-limits on the conditions you can claim, meaning you won’t face unexpected restrictions on your coverage, and our excess is an annual excess (per year), not per condition or per claim like some others, which can help to lower unexpected out of pocket expenses.

Plus, if you insure your puppy or kitten with Petsy before their first birthday, you’ll receive an annual limit bonus that will continue after the renewals of the policy.

How we take care of you and your pet

Pet parents have praised us for providing top-notch coverage with best-in-class customer support.

We’ve won Canstar’s Outstanding Value Pet Insurance Award for two consecutive years for 2023 and 2024, and the majority of online reviewers have given us a 5-star rating.

How to set up a policy

Getting a quote for your pet insurance is quick and easy and only takes a few minutes. Get a quote online, fill in the details about your pet and follow the prompts. Alternatively, if you prefer to speak with someone, our friendly team is available to assist you over the phone at 1300 952 790.

Our policies are customisable. You can choose the level of coverage that suits your needs, including the benefit percentage, annual limit, and annual excess. Plus, you can decide if you want to include vet consultation costs in your cover. For pets under three years old, you also have the option to add Optional Extra Benefits.

When you complete an online quote, you’ll see a summary of the coverage options. You can select a preferred start date that is within 30 calendar days for your policy to commence. Once you make your payment, you’ll receive a confirmation of your coverage and your policy documents via email, ensuring everything is set for your pet’s protection.